Credit Score for Mortgage 2025 📊
Minimum Requirements by Loan Type: Conventional, FHA, VA, USDA & Jumbo
Conventional Min
620
FHA Min
580
VA Min
None
Jumbo Min
680+
📈 What Credit Score Do You Need for a Mortgage?
Your credit score is one of the most important factors in mortgage approval. It determines whether you qualify, what interest rate you receive, and how much you can borrow. In 2025, minimum credit score requirements vary significantly by loan type.
💡 Key Insight:
Credit scores range from 300-850. Most lenders use FICO scores (Classic 04 or newer versions). Each 20-point increase in credit score can save you $50-100/month on your mortgage payment.
📋 Minimum Credit Score Requirements by Loan Type (2025)
| Loan Type | Min Credit Score | Typical Rate Range | Best For |
|---|---|---|---|
| Conventional | 620 (Fannie Mae) | 6.5-7.0% | Good credit, 3%+ down |
| FHA | 580 (3.5% down) | 6.8-7.2% | Lower credit, 3.5% down |
| VA | No minimum | 6.0-6.5% | Veterans, 0% down |
| USDA | 580 | 6.3-6.8% | Rural areas, 0% down |
| Jumbo | 680-700+ | 6.8-7.3% | Loans over $766K |
🏦 How Lenders Calculate Your Credit Score
Mortgage lenders use FICO scores from three credit bureaus: Equifax, Experian, and TransUnion. They typically use the middle score of the three.
FICO Score Breakdown
- • Payment History (35%): On-time payments
- • Credit Utilization (30%): Used vs available credit
- • Credit Age (15%): Length of credit history
- • Credit Mix (10%): Variety of credit types
- • New Inquiries (10%): Recent credit applications
Credit Score Ranges
- • Excellent: 750+ (best rates)
- • Good: 700-749 (competitive rates)
- • Fair: 650-699 (higher rates)
- • Poor: 580-649 (FHA/specialized)
- • Very Poor: Below 580 (limited options)
💰 Impact of Credit Score on Mortgage Rates
Your credit score directly affects your interest rate. Here's how a $300,000 mortgage changes with different credit scores:
| Credit Score | Interest Rate | Monthly Payment | 30-Year Cost |
|---|---|---|---|
| 760+ | 6.25% | $1,851 | $666,360 |
| 700-759 | 6.50% | $1,896 | $682,560 |
| 680-699 | 6.75% | $1,941 | $698,760 |
| 620-679 | 7.25% | $2,032 | $731,520 |
Impact: A 140-point credit score difference (620 vs 760) costs you $65,160 over 30 years on a $300,000 loan!
✅ How to Improve Your Credit Score
Pay Bills On Time
Payment history is 35% of your score. Even one late payment can drop your score 100+ points.
Lower Credit Utilization
Keep credit card balances below 30% of limits. Paying down balances can improve scores quickly.
Don't Close Old Accounts
Credit age matters. Keeping old accounts open helps your score.
Dispute Errors
Check your credit report for errors and dispute inaccuracies with bureaus.
❓ FAQ: Credit Score & Mortgages
Q: What if my credit score is below 620?
A: FHA loans accept 580+ scores. VA loans have no minimum. Consider improving your score first—each 20 points saves $50-100/month.
Q: How long does it take to improve credit score?
A: 30-90 days for recent changes to show. Paying down debt is fastest. Disputes take 30 days.
Q: Do mortgage inquiries hurt my credit?
A: Yes, but multiple inquiries within 14-45 days count as one. Shop rates quickly to minimize impact.
Sarah Mitchell
Senior Mortgage Advisor & VA Loan Specialist
Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.